Settlement Agreement between Consumer Advocacy Group and Home Expressions, Inc. 1 SETTLEMENT AGREEMENT BETWEEN CONSUMER ADVOCACY GROUP, INC. AND HOME EXPRESSIONS, INC. Consumer Advocacy Group, Inc. (“CAG”) and Home Expressions, Inc. (referred to as “HOME EXPRESSIONS”), (CAG and HOME EXPRESSIONS collectively referred to as, the “Parties”) enter into this agreement (“Settlement Agreement”) for the purpose of avoiding prolonged and costly litigation to settle CAG’s allegations that HOME EXPRESSIONS violated Proposition 65. The effective date of this Settlement Agreement shall be the date upon which it is fully executed by all Parties hereto (the “Effective Date”). 1.0 Introduction 1.1 CAG is a California-based entity that seeks to promote awareness of exposures to toxic chemicals and improve human health by reducing or eliminating hazardous substances contained in consumer and industrial products. 1.2 HOME EXPRESSIONS previously sold, at various times, Paper Towel Holders including but not limited to “Home Collections® Paper Towel Holder; 7.5” x 13.5”; Home Expressions, Inc.; Made in China; UPC# 8 47311 01661 6” (referred to throughout as the “Covered Product s”). The Covered Products are further limited to those sold by HOME EXPRSSIONS only.
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Settlement Agreement between
Consumer Advocacy Group and Home Expressions, Inc.
1
SETTLEMENT AGREEMENT
BETWEEN
CONSUMER ADVOCACY GROUP, INC.
AND
HOME EXPRESSIONS, INC.
Consumer Advocacy Group, Inc. (“CAG”) and Home Expressions, Inc. (referred
to as “HOME EXPRESSIONS”), (CAG and HOME EXPRESSIONS collectively
referred to as, the “Parties”) enter into this agreement (“Settlement Agreement”) for the
purpose of avoiding prolonged and costly litigation to settle CAG’s allegations that
HOME EXPRESSIONS violated Proposition 65. The effective date of this Settlement
Agreement shall be the date upon which it is fully executed by all Parties hereto (the
“Effective Date”).
1.0 Introduction
1.1 CAG is a California-based entity that seeks to promote awareness of
exposures to toxic chemicals and improve human health by reducing or
eliminating hazardous substances contained in consumer and industrial products.
1.2 HOME EXPRESSIONS previously sold, at various times, Paper Towel
Holders including but not limited to “Home Collections® Paper Towel Holder;
7.5” x 13.5”; Home Expressions, Inc.; Made in China; UPC# 8 47311 01661 6”
(referred to throughout as the “Covered Products”). The Covered Products are
further limited to those sold by HOME EXPRSSIONS only.
Settlement Agreement between
Consumer Advocacy Group and Home Expressions, Inc.
2
1.3 CAG alleges that Covered Products contain Di (2-ethylhexyl) phthalate
(“DEHP”), also known as Diethyl Hexyl Phthalate and Bis (2-ethylhexyl)
phthalate and that HOME EXPRESSIONS did not provide a required warning in
compliance with the California Safe Drinking Water and Toxic Enforcement Act
(Cal. Health & Safety Code § 25249.5, et seq. (“Proposition 65”)).
1.4 On January 1, 1988, the Governor of California added DEHP to the list
of chemicals known to the State to cause cancer, and on October 24, 2003, the
Governor added DEHP to the list of chemicals known to the State to cause
developmental male reproductive toxicity. These additions took place more than
twenty (20) months before CAG served its “Sixty-Day Notice of Intent To Sue
For Violations Of The Safe Drinking Water And Toxic Enforcement Act of 1986”
which is further described below.
1.5 DEHP is referred to hereafter as the “Listed Chemical”.
1.6 On or about February 19, 2016, CAG served Home Expressions Inc.;
National Stores, Inc. dba Fallas Paredes, Factory 2-U, Fallas Discount Stores; and
Fallas Discount Stores #0136, and certain relevant public enforcement agencies
with documents entitled “Sixty-Day Notice Of Intent To Sue For Violations Of
The Safe Drinking Water And Toxic Enforcement Act of 1986” regarding
Covered Products containing the Listed Chemical.
1.7 The Sixty-Day Notice (referred to as “Notice”) alleged that the noticed
parties violated Proposition 65 by failing to warn consumers in California that use
of Covered Products exposes persons to the Listed Chemical.
Settlement Agreement between
Consumer Advocacy Group and Home Expressions, Inc.
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1.8 The Parties enter into this Settlement Agreement to settle disputed
claims between the Parties as set forth below concerning the Parties’ and the
Covered Products’ compliance with Proposition 65 (the “Dispute”).
1.9 By execution of this Settlement Agreement, the Parties do not admit any
facts or conclusions of law, including, but not limited to, any facts or conclusions
of law regarding any violation of Proposition 65, or any other statutory,
regulatory, common law, or equitable doctrine. Nothing in this Settlement
Agreement shall be construed as an admission by the Parties of any fact,
conclusion of law, issue of law, or violation of law. Nothing in this Settlement
Agreement, nor compliance with its terms, shall constitute or be construed,
considered, offered, or admitted as evidence of an admission or evidence of fault,
wrongdoing, or liability by HOME EXPRESSIONS, its officers, directors,
employees, or parents, subsidiaries or affiliated corporations, in any
administrative or judicial proceeding or litigation in any court, agency, or forum.
Except for the allegations settled and compromised, nothing in this Settlement
Agreement shall prejudice, waive, or impair any right, remedy, argument, or
defense that CAG or HOME EXPRESSIONS may have against one another in
any other pending legal proceeding as to allegations unrelated to the Dispute or
claims released herein.
2.0 Release
This Settlement Agreement is a full, final, and binding resolution between CAG,
acting in its individual capacity, on the one hand, and (a) HOME
EXPRESSIONS, and its owners, parents, subsidiaries, affiliates, sister and related
Settlement Agreement between
Consumer Advocacy Group and Home Expressions, Inc.